Prepare journal entries Condax Corp should prepare to account for its investment in Opentech Corp. and Donware IncOn January 1, 2019, Condax Corp purchased 8,000 shares of Opentech Corp's common shares at $40. This purchase represented 35% of Opentech's outstanding shares and gave Condax significant influence over Opentech's management and operations.On October 11, 2019, Opentech declared and paid cash dividends of $30,000.On December 31, 2019, Opentech reported profit of $190,000 for the year.Also, January 2, Condax Purchased 5,000 shares of Donware, Inc. for $40 per share plus $6,195 in fees and commission. These shares represent only 1% ownership of Donware.Sept. 20 Donware declared a $1.50 per share cash dividend to shareholders of record on October 1, payable October 15. To CondaxOct. 15 Condax received Donware, Inc. cash dividend.Dec. 31 Donware reported $35 per share as its market value for the year end.

Journal entries are to be recorded as per dual aspect concept. it means every debit should have…

Answered: Prepare journal entries Condax Corp…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

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Prepare journal entries Condax Corp should prepare to account for its investment in Opentech Corp. and Donware Inc

On January 1, 2019, Condax Corp purchased 8,000 shares of Opentech Corp's common shares at $40. This purchase represented 35% of Opentech's outstanding shares and gave Condax significant influence over Opentech's management and operations.
On October 11, 2019, Opentech declared and paid cash dividends of $30,000.
On December 31, 2019, Opentech reported profit of $190,000 for the year.
Also, January 2, Condax Purchased 5,000 shares of Donware, Inc. for $40 per share plus $6,195 in fees and commission. These shares represent only 1% ownership of Donware.
Sept. 20 Donware declared a $1.50 per share cash dividend to shareholders of record on October 1, payable October 15. To Condax
Oct. 15 Condax received Donware, Inc. cash dividend.
Dec. 31 Donware reported $35 per share as its market value for the year end.

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